Graduate Leverage Lawsuit????

[Dr.Bevo]

There was a presentation by a loan consolidation group at my school the other day. On the subject of graduate leverage, he said that the companies they work with sell their loans and that most students don't receive the interest rate deduction incentives that they are promised because the companies that buy the loans don't honor those incentives. He went on to say that GL is currently being sued by former students that feel they were mislead.

I realize that this guy had every reason to mislead people on this. So I question that whole statement's veracity. I was under the impression that Graduate Leverage gets binding contracts with the lenders it recommends that states the incentives must be honored.

Anyone else heard about this?????

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[MedMan2005]

I have done two consolidations with Graduate Leverage: one in 05’ and one in 06’. The reason that I used Graduate Leverage was to receive the offered rate reduction to my previous consolidated rate of 2.875% from my weighted rate of 3.7something percent. My loans are already being serviced by SAF since roughly November and since I signed up for automatic withdrawal from my bank account I have received my rate reduction to 2.875%. I am scheduled to receive another 1% reduction after 36 consecutive payments, obviously which wont occur for over another 2 years.

I am not sure who these alleged students that are suing them or what possible reason they have as I have spoken to others who consolidated with GL from my school and all have received their reduction.

What was the name of the company that presented at your school and told you this? I would like to investigate this as I recommended GL to the current student groups at the school I attended after I graduated.